Sequa Petroleum N.V.

Regulatory Filings • Feb 9, 2017

Sequa Petroleum N.V. plans to cease its activities in Norway

Sequa Petroleum N.V. plans to cease its activities in Norway

Sequa Petroleum N.V. ("Sequa" or the "Company") today

announces that following a strategic review it plans to cease

its E&P activity in Norway conducted through Tellus Petroleum

AS, and focus on acquiring assets elsewhere in Europe.

Pursuant to local statutory requirements, consultation

procedures with Tellus employee representatives have been

initiated and other required steps will follow in due course.

Further to its press release of 23 December 2016 in relation

to the Sequa Petroleum N.V. USD 300,000,000 5.00 per cent

Convertible Bonds due 2020 of which USD 204,400,000 in

principal amount remain outstanding, ISIN: XS1220076779

("Bonds"), the Q4 2016 USD $5.11M coupon is still

outstanding, however the Company understands that the

required majority of the Bonds is now held by its main

shareholder (Sapinda and affiliates), who are supportive of

restructuring the Company's debt. The cessation of business

in Norway constitutes under article 10 (g) of the Terms and

Conditions of the Bonds a potential default of the Bonds,

which the Company also expects to be resolved with Sapinda's

support.

By way of update on the convertible loan facilities totalling

USD 62.5M from Sapinda Invest Sarl and Sapinda Asia Limited

("Convertible Loan"), since 23 December a further USD

1,527,640 was provided meaning a total of USD 5,118,521 has

now been received since 30 June 2016. The amounts received

did not match the timing or quantum requested by the Company,

however the Company currently expects to be able to draw

sufficient further funds to enable it to continue to trade

whilst the Company's debt is being restructured and the

process to cease activity in Norway and liquidate Tellus

assets is completed.

The net funds expected from the repatriation of liquidated

assets together with debt restructuring will enable the

Company to progress selected high quality acquisition targets

of production and development assets elsewhere.

Effective today, Jelte Bosma will relinquish his role of

director of the Management Board, to pursue additional

interests outside the oil & gas sector. Mr Bosma will

continue as an employee of the Company with a focus on

business development.

Contacts:

Jacob Broekhuijsen, Chief Executive Officer

+44(0)203-728-4450 or info@sequa-petroleum.com